Toshiba Decides to Sell Chip Unit to Bain-Led Team (News)
Tokyo, Sept. 20 (Jiji Press)—Troubled Japanese electronics and machinery giant Toshiba Corp. said Wednesday that the company decided at a board meeting the same day to sell its prized flash memory unit to a Japanese–US–South Korean consortium led by US private equity fund Bain Capital.
Toshiba said it aims to conclude a deal to sell the unit, Toshiba Memory Corp., for ¥2 trillion at an early date.
The consortium is expected to spend a total of some ¥2.4 trillion, including for investment in equipment and facilities.
Toshiba was also in talks with hard disk drive maker Western Digital Corp., its US flash memory business partner. But the two companies apparently failed to reach an agreement as they remained apart over the US firm's future involvement in Toshiba Memory's management.
Toshiba plans to complete the chip unit sale by the end of March 2018, aiming to avoid facing negative net worth for the second straight year and thus prevent its delisting from the Tokyo Stock Exchange.[Copyright The Jiji Press, Ltd.]